Questrade Financial has secured regulatory approval from the Canadian regulator, the Office of the Superintendent of Financial Institutions (OSFI), to launch its digital bank, Questbank.
The company received the ‘Order of Commencement and Carrying on of Business’, which is the final step in the federal banking licensing process.
Questrade manages over C$85bn ($60.61bn) in assets and has primarily operated as a non-bank online brokerage.
The company applied for the banking licence in 2019 and now plans to introduce Questbank to the Canadian market.
The company would provide further details about Questbank and its planned banking products and services in the first half of 2026.
Questrade has recently experienced an increase in trading volume, which it attributes to heightened market volatility.
According to Reuters’ report, the Canadian banking sector has long been dominated by six major banks, which hold significant market share in consumer and commercial banking.
However, smaller digital institutions, such as EQB’s Equitable Bank, and fintech companies such as Koho and Wealthsimple, have recently started offering lower fees and digital-first services, added the media outlet.
OSFI oversees the licensing process for new banks in Canada, ensuring that all entrants meet the requirements.
OSFI’s superintendent Peter Routledge, at an event in October, said he is willing to be “a little bit less conservative” to increase competition in the sector.
“We need to do more to make it easier for competitors to enter the system. We can take some calculated risks to let new players come in and compete,” he added.
Questrade CEO Edward Kholodenko said: “Following the successful path forged over Questrade’s 26-year history, we are thrilled to expand our offering to introduce much-needed competition to the Canadian banking landscape.”
